Lean Review

Stability
A. What is Stability ?
- Stability is capability to produce consistent result over time
B. When a process is stable ?
- Equipment breaks down regularly
- Defects are regularly produced
- No standard work, the amount of time it takes to perform a given process varies
C. Indicator of Stability ?
- Same quantity of products, with the same amount of resource time (people &
equipment), with a high degree of reliability (>=80%)
- Ability to meet customer requirements with quality products the first time through on
time (>=80%)
- Output
D. Indicator of instability ?
- A high degree of variation in performance measures - either pieces produced or pieces
per labor hour
- Changing the “plan” often when a problem occurs
- It is not possible to observe a consistent pattern or method to the work
- Batches of piles of WIP are random
- Sequential operations that operate independently
- Be careful of “normally/usually..” when abnormal becomes normal
- “we trust the operators to make decisions about how the work is done..”
E. Why stability ?
- Clearing the could: deep understanding the current process
- To create a basis of consistency so the “reality” can be seen and random acitvities
removed, thus establishing a foundation for true improvement
- Stability => Flow => Pull
- No operation will ever achieve a perfect level of stability. So how much stable do we
need ?
 Enough to move into the next phase of achieving some degree of flow. Then, a
higher level of stability will be nescessary to meet tighter requirements.
F. Strategy and tools to create stability
- Strategy: identify and eliminate “big” waste
- Lean tools:
o Standing in the circle exercise
o Standardized work
o 5S
o Workplace organization
o Quick change over (Single minute exchange of die”
o Preventive Maintance (TPM)
o Problem-solving
o Level to daily customer requirement (Levelling)
G. Standing in a circle exercise ( solution 1)
- Chanllenge:
 o Need to stand long enough to get a clear understanding
o The longer you stand, the harder to see the waste ! ( Need fresh eyes)
- Advice:
o Learn to ask questions
o Do not seek out immediately solutions

TPM : Total productive maintance

→ Emphasizes proactive & preventative maintenance to maximize operational efficiency

of equipment
→ Blurs distinction between roles of production & maintenance by empowering
operators to help maintain equipment
→ Creates shared responsibility for equipment ⇐ greater involvement of shop floor
workers

TPM Model of the JIPM (Japan Institute of Plant Maintenance)

Definition: TPM is a holistic approach to equipment maintenance that strives to achieve

perfect production in terms of no breakdowns/defects/accidents.

Four aspects of TPM:

Cultural: create a corporate culture that pursues production system efficiency

improvement
Systematically: the production system has to prevent all kinds of losses
Holistic: include all sections (production, development, sales, management)
Team-based: involve all members (from executives to frontline employees)
 OEE (Overall Equipment Effectiveness)
OEE = Availabilty x Performance x Quality

Availabilty = ( Actual Production Time / Planned Production Time) x 100

Performance = ( Actual Production Rate / Maximum Production Rate) x 100
Quality = ( Good Unit Produce / Total Unit Produce) x 100

World class : A = , P= , Q=

Example OEE Calculation

The cycle time for soft drinks is 5 seconds while that of beers is 7 seconds. Moreover, the company operates from Monday to
Saturday particularly the daily production schedule includes two shifts:
- Morning shift: 6:00 – 14:00
- Afternoon shift: 14:00 - 22:00
For each shift, there are two types of breaks: Lunch break (45 minutes), Small breaks (15 minutes) and also every Thursday
evening, the preventive maintenance activity is performed daily at 13:45-14:15, with no production. Moreover, the
preventive maintenance activity is performed daily at 13:45-14:15, based on line-walk observation at 21:00-22:00.
Breakdowns happened on Monday, Tuesday, and Friday:
Monday 7:15 – 8:41
Tuesday 17:01 – 17:15
Friday 14:30 – 15:48
- Set-up changed from Soft drinks to Beers on Thursday at 10:00 – 10:30
- 7354 bottles of soft drinks were produced, of which 231 were defects.
- 5329 bottles of beers were produced, of which 31 were defects.
Calculate the OEE for the company production during the above conditions
 - Answer:
- Quality
o Good unit produce = (7354 - 23) + (5329 – 31) = 12,629
o Total unit produce = 7354 + 5329 = 12683
 Quality = (12,629 / 12683)x100 = 99.5 %
- Availabity:
o Total operating time = 16 hours = 16 x 60 = 960 minutes
o Lunch break = 45 minutes
o Small break = 15 minutes
 Operating time with break = 960 – (15+45)x2 = 840 minutes / days
 1 week operting ( 6 days) = 840 x 6 = 5040 mins
 Total operting time = 5040 – 60x6 – 60 = 4740 mins ( Planned Operting Time)
- Due to break downs
o Monday breakdown = 86 mins , Tuesday Breakdown = 14 mins, Friday
Breakdown = 78 mins
 Total breakdown time = 178 mins + 30 minutes ( Thursday) = 208 mins
- Actual Production time = 4740 – 208 = 4532
 Availability = ( 4532/4740) = 95.6 %
- Performance:
o Plan production rate = 5/60 x 4740 + 7/60 x 4740 = 946,578 part = 947
o Actutal Production Rate = 5/60 x 4532 + 7/60 x 4532 = 905,04 part = 905

 Performance = 905 / 947 = 95.56 %

 OEE = A x P x Q = 90.8%

ONE PIECE PRODUCTION ( produce what type of products that customer want)
Vien A is a wooden furniture company in Binh Duong province. They
produce tables, chairs, trolleys, etc., based on customer orders.
Currently, they have to produce 2000 wooden trolleys per month as
supplying to another wooden furniture company, Shirai. Moreover,
the company’s production includes 6 steps: Material Treatment,
Drilling and Shaping, Assembling, Sanding, Painting, and Packaging.
The company operates 10 hours a day and 24 days a month. Given
the VSM below (Fig.1) and assume that one pallet WIP contains 10
wooden trolleys (from material treatment to packaging process)
 Given data:
- Operting time = 10h per day, 24 days per moth
- 1 pallet WIP = 10 trolleys
- Demand = 2000 trolleys per month

Solution
- Customer takt time = ( Planned operting time ( per day) / avarage customer demand)
= 10x60x60 (s) / 2000 : 24
= 428s/ pcs
- Value-added time = sum of Cycle time
= 0.91 + 1.43 + 0.89 + 1.29
= 7.52 mins
- Non-value-added time = (sum of cycle time + setup time)xuptime
= (0.91+30)x98% (process 1) + (0.89+0)x100% (P2)
+ (1.29+20)x90% + (1.3+30)x98% +
(1.53+30)x98%
= 132.27 mins
- Evaluation:
o WIP too high
o Process not synchronize
- Improve:
o Pull system
o FIFO LANE
o Eliminate Downtime (Increase Availability):
 Analyze the reasons for breakdowns and address the root causes.
 Implement preventive maintenance to reduce unexpected downtime.
 Optimize setup times by employing SMED (Single-Minute Exchange of
Die) principles to reduce the 30-minute setup times reported.
o Optimize Cycle Times (Improve Performance):
 Standardize work to ensure that all operators are working as
efficiently as possible.
  Balance the line so that all stages have similar cycle times to prevent
bottlenecks.
 Use Lean tools like 5S to organize the workplace and reduce time
wasted on searching for tools or materials.
o Improve Quality (Enhance Quality):
 Implement quality control checks at each stage of production to
catch defects early.
 Train workers to understand the importance of quality and to
empower them to make improvements.
 Use root cause analysis to understand why defects occur and to
prevent them in the future.
o Streamline Material Flow:
 Adjust the WIP (Work In Progress) levels to minimize overproduction
and reduce inventory carrying costs.
 Implement a pull system such as Kanban to better regulate the flow
of materials through the process.
 Use cross-functional teams to address issues that span multiple
stages of the process.
o Workforce Engagement and Training:
 Engage operators in continuous improvement processes such as
Kaizen.
 Train employees not just on the tasks but also on problem-solving
and continuous improvement techniques.
 Foster a culture that encourages suggestions for improvements and
recognizes contributions.
o Use Technology and Automation:
 Evaluate if certain repetitive tasks can be automated to improve
speed and consistency.
 Invest in technology that can track production metrics in real-time,
which can help in making informed decisions quickly.
o Performance Monitoring:
  Establish Key Performance Indicators (KPIs) to monitor the
effectiveness of changes.
 Use visual management tools to communicate the status of
production and highlight areas that need attention.
o Customer and Supplier Integration:
 Work closely with suppliers to ensure that the quality of materials is
high and delivery is reliable.
 Collaborate with customers to understand their requirements better
and adjust the process accordingly to meet those needs.
o Sustainability Practices:
 Implement environmentally friendly practices such as waste recycling
and reduction.
 Invest in energy-efficient equipment and materials.

Practice:
Manual Setup
Process Process Operation Time Auto feed Time Total time Production
Order Process Name Code id (sec.) time (sec.) (min.) per unit Capacity
Placing a die into
1 substrate AS01 20 50 5
Applying epoxy into the
2 substrate AS02 35 80 4
3 Heating the composition AS03 25 120 30
Cooling down and
4 washing the composition AS04 8 90 10
5 Temperature Test TE01 20 60 12
 Manual Setup
Process Process Operation Time Auto feed Time Total time Production
Order Process Name Code id (sec.) time (sec.) (min.) per unit Capacity
6 Functional Test TE02 30 45 10
7 Laser marking PA01 25 30 10

8 Packaging PA02 10 20 5
Based on customer demand, the required output of this system is
500 units per day. Moreover, the company operates 8 hours a day,
there are two workers in this production system, and the walking
time between two consecutive processes is 6 seconds.
a. Fill in the table above
b. Establish the standard operation chart for the company
production system. Could the company satisfy its customer
demand ?
Solution:
- Total time per unit = (Manual Operation time x units producing per
day + auto feedx500 + setup timex60(s))/500
Total time per unit = 20x500 + 50x500 + 5x60
= 35300 / 500 = 70.6s / pcs
- Total operting time = 8 x 60 x 60 = 28800s
- Total processing time = 20(P1)+50+ 5x60 = 370s
 Production Capacity process 1 = 28800/370 = 77.8 pcs